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(100% – not prorated to reflect our 31.6% interest)

Highlights ($ millions except where indicated) 2013 2012 Change
  1. 1 Based on actual generation of 24.8 TWh plus deemed generation of 0.6 TWh
  2. 2 Based on actual generation of 26.8 TWh plus deemed generation of 0.4 TWh
Output – terawatt hours (TWh) 24.8 26.8 (7)%
Capacity factor
(the amount of electricity the plants actually produced for sale as a percentage of the amount they were capable of producing)
87% 94% (7)%
Realized price ($/MWh) 541 552 (2)%
Average Ontario electricity spot price ($/MWh) 25 23 9%
Revenue 1,370 1,487 (8)%
Operating costs (net of cost recoveries) 1,001 945 6%
Cash costs 777 724 7%
Non-cash costs 224 221 1%
Income before interest and finance charges 369 542 (32)%
Interest and finance charges 8 26 (69)%
Cash from operations 649 523 24%
Capital expenditures 237 194 22%
Distributions 330 425 (22)%
Capital calls 42 63 (33)%

Our earnings from BPLP

Highlights ($ millions except where indicated) 2013  2012  Change
BPLP’s earnings before taxes (100%) 361  516  (30)%
Cameco’s share of pre-tax earnings before adjustments (31.6%) 114  163  (30)%
Proprietary adjustments (5) (6) (17)%
Earnings before taxes from BPLP 109  157  (31)%

BPLP’s decreased results in 2013 when compared to 2012 are partially the result of revenues being 8% lower than in 2012 due to a 7% decrease in generation and a 2% decrease in realized electricity prices. BPLP’s average realized price reflects spot sales, revenue recognized under BPLP’s agreement with the Ontario Power Authority (OPA) and revenue from financial contracts.

BPLP has an agreement with the OPA under which output from each B reactor is supported by a floor price (currently $52.34/MWh) that is adjusted annually for inflation. The floor price mechanism and any associated payments to BPLP for the output from each individual B reactor will expire on a date specified in the agreement. The expiry dates are June 30, 2019 for unit B5, April 30, 2020 for unit B6, August 31, 2020 for unit B7 and December 31, 2020 for unit B8. Revenue is recognized monthly, based on the positive difference between the floor price and the spot price. BPLP does not have to repay the revenue from the agreement with the OPA to the extent that the floor price for the particular year exceeds the average spot price for that year.

The agreement also provides for payment if the Independent Electricity System Operator (IESO) reduces BPLP’s generation because Ontario’s baseload generation supply is higher than required. The amount of the reduction is considered ‘deemed generation’, for which BPLP is paid either the spot price or the floor price—whichever is higher. The compensation for deemed generation is a reflection of the Bruce B units’ ability to provide flexible output to the Ontario market, and the relatively high fixed cost nature of the business. Deemed generation was 0.6 TWh in 2013 and 0.4 TWh in 2012.

During 2013, BPLP recognized revenue of $698 million under the agreement with the OPA, compared to $773 million in 2012.

BPLP also has financial contracts in place that reflect market conditions at the time they were signed. BPLP receives or pays the difference between the contract price and the spot price. During 2013, gains on BPLP’s contracting activity were $59 million, compared to $108 million in 2012.

BPLP’s capacity factor was 87% in 2013, down from 94% in 2012 due to a higher volume of outage days during the year. In 2013, there were 140 planned and 20 unplanned outage days, compared to 46 planned and 25 unplanned outage days in 2012.

In addition, BPLP’s decreased results in 2013 when compared to 2012 were also partially the result of higher operating costs. BPLP’s operating costs were $1.0 billion this year compared to $945 million in 2012 due to higher maintenance costs incurred primarily as a result of more planned outage days than in 2012.

The net effect was a decrease in our share of earnings before taxes of 31%.

BPLP distributed $330 million to the partners in 2013. Our share was $104 million. BPLP capital calls to the partners in 2013 were $42 million. Our share was $13 million. The partners have agreed that BPLP will distribute excess cash monthly, and will make separate cash calls for major capital projects.

Subject to closing, we have sold our entire interest in BPLP and related entities effective December 31, 2013. See Acquisitions and divestitures for details.